Speculation is rising that mining magnate Nathan Tinkler may soon launch a $5 billion takeover of Whitehaven Coal.
In investor notes this morning both Bloomberg and Foster Stockbroking tipped Tinkler may soon "rally up the troops" to launch a takeover for the NSW coal producer.
Foster Stockbroking analysts said this morning there was a "high probability" of Tinkler launching a takeover bid for Whitehaven north of $5.50 a share.
Bloomberg has also predicted an offer slightly above $5 a share.
An unsourced report in the Australian Financial Review has tipped the takeover could happen as soon as next week.
"The potential takeover highlights the continuation within the space at a time where equity markets remain weak, but longer-term demand by end users is still apparent," Foster Stockbroking said this morning.
"We believe there is a high probability of an offer above $5.50/sh based on recent M&A transaction multiples in the coal space."
Tinkler has eyed a Whitehaven takeover for some time, and launched an informal bid for the company earlier this year.
Image: Robert McKell, The Daily Telegraph